HARMAN International Industries, Incorporated, the leading global audio
and infotainment group (NYSE: HAR), today announced results for the
second quarter ended December 31, 2012. HARMAN also announced today
plans to launch an infotainment services business as well as
restructuring initiatives to further reduce operating costs.

Dinesh C. Paliwal, the Company’s Chairman, President and CEO, said, “Our
results during the second quarter did not meet our expectations. To
enhance returns for our shareholders, we are taking the right steps to
reduce costs, continue to drive innovation and expand our portfolio to
achieve profitable growth. Economic headwinds and the slow-down in the
automotive sector in Europe created a difficult operating environment
for HARMAN during the second quarter, and we expect these conditions to
continue for the first half of calendar year 2013. Despite these
challenges, we will continue to aggressively execute on all four of our
strategic pillars to strengthen the Company’s competitiveness over the
long-term. Our fundamental strategy remains unchanged and with higher
margin order backlog we continue to believe that Fiscal 2014 and 2015
will be strong years for HARMAN.”

Net sales for the second quarter were $1.056 billion, a decrease of 6
percent compared to the same period last year. In local currency, net
sales decreased by 4 percent compared to the same period last year
primarily as a result of the economic slow-down in Europe, which
significantly impacted automotive production. Sales in the Professional
Division were similarly affected by the recession in Europe, as well as
by capital project delays during the quarter pending the outcome of
presidential elections in the USA and China.

Second quarter operating income was $68 million, compared to $95 million
in the same period last year. Excluding restructuring and non-recurring
charges, operating profit in the second quarter was $57 million,
compared to $96 million in the same period last year.

Non-GAAP earnings per diluted share were $0.59 for the quarter compared
to $0.83 in the same period last year. GAAP earnings per diluted share
were $0.68 for the quarter compared to $0.82 in the same period last
year. During the second quarter, on a GAAP basis, the Company reduced
its contingent consideration accrual related to the acquisition of MWM
Acoustics, now known as HARMAN Embedded Audio LLC, by $12.5 million.

FY 2013 Key Figures – Total Company

Three Months Ended December 31

Six Months Ended December 31

Increase (Decrease)

Increase(Decrease)

$ millions (except per share data)

3MFY13

3MFY12

IncludingCurrencyChanges

ExcludingCurrencyChanges1

6MFY13

6MFY12

IncludingCurrencyChanges

ExcludingCurrencyChanges1

Net sales

1,056

1,127

(6

%)

(4

%)

2,054

2,178

(6

%)

(1

%)

Gross profit

272

306

(11

%)

(9

%)

550

593

(7

%)

(3

%)

Percent of net sales

25.7

%

27.1

%

26.8

%

27.2

%

SG&A & Other

203

210

(3

%)

(1

%)

403

424

(5

%)

(1

%)

Operating income

68

95

(28

%)

(26

%)

147

170

(13

%)

(9

%)

Percent of net sales

6.5

%

8.5

%

7.2

%

7.8

%

Net Income

47

59

(20

%)

(16

%)

102

108

(5

%)

1

%

Diluted earnings per share

0.68

0.82

1.47

1.49

Restructuring-related costs

(12

)

1

(11

)

3

Non-GAAP

Gross profit(1)

273

306

(11

%)

(9

%)

551

595

(7

%)

(3

%)

Percent of net sales(1)

25.8

%

27.1

%

26.8

%

27.3

%

SG&A & Other(1)

216

210

3

%

5

%

415

423

(2

%)

3

%

Operating income(1)

57

96

(41

%)

(39

%)

136

172

(21

%)

(17

%)

Percent of net sales(1)

5.4

%

8.5

%

6.6

%

7.9

%

Net Income(1)

41

60

96

110

(13

%)

(7

%)

Diluted earnings per share(1)

0.59

0.83

(31

%)

(28

%)

1.38

1.52

Shares outstanding – diluted (in millions)

70

72

70

72

1 A non-GAAP measure, see reconciliations of non-GAAP measures later
in this release.

Summary of Operations – Gross Margin and SG&A

Non-GAAP gross margin for the second quarter of fiscal 2013 decreased
130 basis points to 25.8 percent. The decline was primarily due to the
impact of lower sales volume on fixed production costs.

SG&A and Other expense as a percentage of sales on a non-GAAP basis in
the second quarter of fiscal 2013 increased 190 basis points to 20.5
percent. This change was primarily related to lower sales volume on
fixed costs.

Operational Restructuring to Improve Financial Results

HARMAN is implementing restructuring initiatives, which we expect will
improve the Company’s operating performance. HARMAN will reduce
approximately 500 jobs in high cost countries, resulting in annual
operational savings of approximately $30-$35 million beginning in fiscal
year 2014. The Company expects to record a restructuring charge of
approximately $30-35 million in the second half of fiscal year 2013.

The Company is also evaluating the sale or closure of a manufacturing
site in Europe, which would reduce an additional 500 jobs.

"These restructuring efforts will allow HARMAN to reduce costs and
compete more effectively," said Mr. Paliwal. "Rebalancing our workforce
is a difficult, but necessary, step that HARMAN is implementing to
deliver improved financial results through the European economic and
automotive cycle recovery."

Launching of Infotainment Services

The Company today announced it will launch HARMAN Infotainment Services
that will leverage the installed base of over 15 million HARMAN
infotainment-equipped vehicles on the road today to create a fast
growing, recurring revenue stream with high margins.

OEMs and car owners are seeking to keep their vehicle infotainment
systems current and connected. HARMAN Infotainment Services will offer
4G/LTE connected head-unit upgrades for vehicles currently on the road;
cloud-based services to the car (such as Aha by HARMAN); and customer
relationship management (CRM) services for automakers using
vehicle-specific aggregated data.

“The launch of our Infotainment Services business will create a new
revenue stream less dependent on automotive production cycles and drive
consistent revenue with two to three times higher margins than the
current Infotainment systems business,” said Mr. Paliwal.

The Company expects service business to grow fivefold within the next
five years from current levels of approximately $100 million.

2013 Outlook

HARMAN today provided an updated outlook regarding its financial targets
for fiscal 2013. In light of lower European automotive production
volumes and a weaker global economic climate, the Company now forecasts
global revenue between $4.175 billion and $4.250 billion and operational
earnings per share between $2.70 and $2.90. Details by division are
provided below.

In addition, HARMAN invites you to visit the Investors section of its
website at: www.HARMAN.com
where visitors can sign-up for email alerts and conveniently download
copies of historical earnings releases and supporting slide
presentations, among other documents. The fiscal second quarter earnings
release and supporting materials will be posted on the site at
approximately 8:00 a.m. EST today, January 31, 2013.

A replay of the call will also be available following its completion at
approximately 1:00 p.m. EST. The replay will be available through April
30, 2013 at 1:00 p.m. EST. To listen to the replay, dial 1 (800) 633
8284 (U.S.) or +1 (402) 977 9140 (International), Access Code: 21645864.

HARMAN (www.HARMAN.com)
designs, manufactures and markets a wide range of audio and infotainment
solutions for the automotive, consumer and professional markets —
supported by 15 leading brands, including AKG®, Harman Kardon®,
Infinity®, JBL®, Lexicon® and Mark Levinson®. The Company is admired by
audiophiles across multiple generations and supports leading
professional entertainers and the venues where they perform. More than
25 million automobiles on the road today are equipped with HARMAN audio
and infotainment systems. HARMAN has a workforce of about 13,400 people
across the Americas, Europe and Asia, and reported net sales of $4.4
billion for the twelve months ending June 30, 2012. The Company's shares
are traded on the New York Stock Exchange under the symbol NYSE:HAR.

A reconciliation of the non-GAAP measures included in this press release
to the most comparable GAAP measures is provided in the tables contained
at the end of this press release. HARMAN does not intend for this
information to be considered in isolation or as a substitute for other
measures prepared in accordance with GAAP.

Forward-Looking Information

Except for historical information contained herein, the matters
discussed in this earnings release are forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act.One
should not place undue reliance on these statements.We base
these statements on particular assumptions that we have made in light of
our industry experience, as well as our perception of historical trends,
current market conditions, current economic data, expected future
developments and other factors that we believe are appropriate under the
circumstances.These statements involve risks and uncertainties
that could cause actual results to differ materially from those
suggested in the forward-looking statements, including but not limited
to: (1) our ability to maintain profitability in our infotainment
division if there are delays in our product launches which may give rise
to significant penalties and increased engineering expense; (2) the loss
of one or more significant customers, or the loss of a significant
platform with an automotive customer; (3) warranty obligations for
defects in our products; (4) fluctuations in currency exchange rates,
particularly with respect to the value of the U.S. Dollar and the Euro;
(5) our ability to successfully implement our global footprint
initiative, including achieving cost reductions and other benefits in
connection with the restructuring of our manufacturing, engineering,
procurement and administrative organizations; (6) fluctuations in the
price and supply of raw materials including, without limitation,
petroleum, copper, steel, aluminum, synthetic resins, rare metals and
rare-earth minerals, or shortages of materials, parts and components;
(7) the inability of our suppliers to deliver products at the scheduled
rate and disruptions arising in connection therewith; (8) our ability to
attract and retain qualified senior management and to prepare and
implement an appropriate succession plan for our critical organizational
positions; (9) our failure to implement and maintain a comprehensive
disaster recovery program; (10) our failure to comply with governmental
rules and regulations, including the Foreign Corrupt Practices Act and
U.S. export control laws, and the cost of complying with such laws; (11)
our ability to maintain a competitive technological advantage through
innovation and leading product designs; (12) our failure to maintain the
value of our brands and implementing a sufficient brand protection
program; (13) the outcome of pending or future litigation and other
claims, including, but not limited to, the current stockholder and
Employee Retirement Income Security Act of 1974 lawsuits; (14) our
ability to enforce or defend our ownership and use of intellectual
property rights; and (15) other risks detailed in Harman International
Industries, Incorporated Annual Report on Form 10-K for the fiscal year
ended June 30, 2012 and other filings made by the Company with the
Securities and Exchange Commission. We undertake no obligation to
publicly update or revise any forward-looking statement except as
required by law. This earnings release also makes reference to the
Company’s awarded business, which represents the estimated future
lifetime net sales for all customers.The Company's future
awarded business does not represent firm customer orders.The
Company calculates its awarded business using various assumptions
including global vehicle production forecasts, customer take rates for
the Company’s products, revisions to product life cycle estimates and
the impact of annual price reductions, among other factors.These
assumptions are updated on an annual basis.The Company updates
the estimates quarterly by adding the value of new awards received and
subtracting sales recorded during the quarter.

HAR-E

APPENDIX

Infotainment Division

FY 2013 Key Figures – Infotainment

Three Months Ended December 31

Six Months Ended December 31

Increase (Decrease)

Increase (Decrease)

$ millions

3MFY13

3MFY12

IncludingCurrencyChanges

ExcludingCurrencyChanges1

6MFY13

6MFY12

IncludingCurrencyChanges

ExcludingCurrencyChanges1

Net sales

540

600

(10

%)

(7

%)

1,101

1,203

(9

%)

(3

%)

Gross profit

113

139

(18

%)

(16

%)

242

283

(15

%)

(9

%)

Percent of net sales

20.9

%

23.1

%

22.0

%

23.5

%

SG&A & Other

83

89

(7

%)

(4

%)

167

186

(10

%)

(4

%)

Operating income

30

50

(39

%)

(37

%)

75

97

(23

%)

(18

%)

Percent of net sales

5.6

%

8.3

%

6.8

%

8.1

%

Restructuring-related costs

(1

)

0

0

1

Non-GAAP

Gross profit(1)

113

139

(19

%)

(16

%)

242

285

(15

%)

(10

%)

Percent of net sales(1)

20.9

%

23.2

%

22.0

%

23.7

%

SG&A & Other(1)

83

89

(7

%)

(4

%)

167

186

(10

%)

(4

%)

Operating income(1)

30

50

(40

%)

(38

%)

75

98

(24

%)

(20

%)

Percent of net sales(1)

5.5

%

8.3

%

6.8

%

8.2

%

1 A non-GAAP measure, see reconciliations of non-GAAP measures later
in this release.

Net sales in the second quarter were $540 million, a decrease of 10
percent. In local currency, net sales decreased by 7 percent primarily
reflecting lower European automotive production volumes due to the lower
demand in Western Europe. In light of declining economic conditions,
several European OEMs extended their holiday shut downs.

Gross margin on a non-GAAP basis in the second quarter decreased 230
basis points to 20.9 percent primarily due to reduced leverage of fixed
costs on lower sales. Although the Division’s SG&A spending decreased
modestly during the quarter, as a percentage of sales however, SG&A and
Other increased 60 basis points to 15.5%.

Infotainment Division Highlights

The new HARMAN infotainment system for BMW premiered this month in the
US and will be available onboard a wide range of BMW models, including
the 7-, 5-, and 3- series vehicles. In addition, the scalable MMI
Navigation Plus Platform that the Company developed for Audi has now
been expanded to several Volkswagen models.

The Company is also addressing a new market segment with the new HARMAN
connected radio platform, part of the Company’s expanded Infotainment
portfolio. The platform targets the entry-level segment and for about
the same cost as a basic radio, an automaker can add smart-phone
connectivity with HARMAN’s Aha radio, turn-by-turn navigation and voice
prompts into their vehicles, as well as meet fast development cycles and
delivery.

At CES, the Company expanded its scalable infotainment platform with an
Android-based, open source application environment. The platform
leverages smart-phone functionality to safely bring car centric apps and
services into the car. Also at CES, the Company showcased its vision for
the future premium infotainment platform. Feature highlights included an
interactive heads-up display combined with smart phone connectivity,
augmented navigation, gesture control, high speed networking, and driver
assist features.

The Aha by HARMAN platform continues to gain traction. Ten leading
automakers from Asia, Europe and America will offer Aha by HARMAN before
the end of 2013. The Aha service uses the HARMAN Cloud Platform to
safely enable Web-based information and entertainment in vehicles in a
radio-like format familiar to drivers.

As noted earlier, the Company announced the creation of HARMAN
Infotainment Services that will leverage the installed base of over 15
million HARMAN infotainment equipped vehicles on the road today to
create a fast growing, recurring revenue stream with high margins.

Lifestyle Division

FY 2013 Key Figures – Lifestyle

Three Months Ended December 31

Six Months Ended December 31

Increase (Decrease)

Increase (Decrease)

$ millions

3MFY13

3MFY12

IncludingCurrencyChanges

ExcludingCurrencyChanges1

6MFY13

6MFY12

IncludingCurrencyChanges

ExcludingCurrencyChanges1

Net sales

372

369

1

%

3

%

663

669

(1

%)

3

%

Gross profit

102

109

(6

%)

(4

%)

197

198

0

%

3

%

Percent of net sales

27.6

%

29.4

%

29.7

%

29.5

%

SG&A & Other

53

59

(11

%)

(9

%)

110

119

(8

%)

(4

%)

Operating income

50

50

1

%

2

%

87

79

10

%

13

%

Percent of net sales

13.4

%

13.5

%

13.1

%

11.8

%

Restructuring-related costs

(11

)

0

(11

)

0

Non-GAAP

Gross profit(1)

103

108

(5

%)

(3

%)

198

197

0

%

4

%

Percent of net sales(1)

27.8

%

29.4

%

29.8

%

29.5

%

SG&A & Other(1)

64

59

9

%

12

%

121

118

3

%

7

%

Operating income(1)

39

50

(21

%)

(20

%)

76

79

(4

%)

(1

%)

Percent of net sales(1)

10.5

%

13.5

%

11.5

%

11.9

%

1 A non-GAAP measure, see reconciliations of non-GAAP measures later
in this release.

Net sales in the second quarter were $372 million, an increase of 1
percent. In local currency sales increased 3 percent, primarily driven
by robust demand for HARMAN’s new home and multimedia products. The car
audio business was negatively impacted by lower European production
volumes due to lower demand in Western Europe. The political clash
between China and Japan also had a negative effect on expected sales for
the quarter. Gross margin on a non-GAAP basis in the second quarter
declined 160 basis points to 27.8 percent primarily due to the change in
product mix.

SG&A and Other expense as a percentage of sales, on a non-GAAP basis, in
the second quarter increased 140 basis points to 17.3 percent. The SG&A
increase was primarily driven by increased R&D investment to accelerate
the development of a scalable car audio solution and the impact of a
non-recurring $4 million earthquake/tsunami-related business
interruption insurance settlement recorded in the prior year.

Lifestyle Division Highlights

In car audio, HARMAN secured four awards from existing customers such as
Toyota, Lexus, and Subaru. BMW also selected HARMAN’s HALOsonic solution
for its next generation cross-car line noise cancellation and engine
sound generation solution.

The Company launched a number of new systems this quarter including its
first Bowers & Wilkins system, under a brand license, on the all-new
Maserati Quattroporte, and new Harman Kardon systems for the all-new BMW
4 series, Mini Paceman, and Mercedes A-Class. HARMAN also launched a new
JBL system for the all-new Toyota RAV4 and new Infinity systems for the
all-new Hyundai Santa Fe and Kia Cadenza.

At CES, the Company introduced QuantumLogic 3D, a powerful new
technology that brings an unmatched three dimensional surround sound
experience to in-car audio. Built on HARMAN’s patented QLS digital
signal processing technology, QuantumLogic 3D uses proprietary
algorithms to add the dimension of height inside the car for an
immersive listening experience while maintaining the integrity of the
original recording.

HARMAN continued to build momentum with its home and multimedia
products. HARMAN received twenty Design and Innovation Awards, including
eight CES Innovation awards, eight iF Design awards in Germany, and four
Red Star awards in China.

JBL was the first brand in the world to ship iPhone 5 Docking Stations
in mass volumes. JBL shipped approximately 250,000 iPhone 5 docking
stations to global customers in the first two months following the
launch.

Professional Division

FY 2013 Key Figures – Professional

Three Months Ended December 31

Six Months Ended December 31

Increase (Decrease)

Increase (Decrease)

$ millions

3MFY13

3MFY12

IncludingCurrencyChanges

ExcludingCurrencyChanges1

6MFY13

6MFY12

IncludingCurrencyChanges

ExcludingCurrencyChanges1

Net sales

144

158

(9

%)

(8

%)

287

306

(6

%)

(4

%)

Gross profit

56

58

(4

%)

(3

%)

111

113

(2

%)

0

%

Percent of net sales

39.0

%

36.8

%

38.7

%

36.9

%

SG&A & Other

36

36

0

%

1

%

72

75

(4

%)

(2

%)

Operating income

20

22

(11

%)

(10

%)

40

38

4

%

6

%

Percent of net sales

13.8

%

14.0

%

13.8

%

12.5

%

Restructuring-related costs

0

1

0

1

Non-GAAP

Gross profit(1)

56

58

(4

%)

(3

%)

111

113

(2

%)

0

%

Percent of net sales(1)

39.0

%

36.8

%

38.7

%

37.0

%

SG&A & Other(1)

37

35

4

%

5

%

72

74

(2

%)

0

%

Operating income(1)

19

23

(17

%)

(16

%)

39

40

(1

%)

1

%

Percent of net sales(1)

13.5

%

14.7

%

13.6

%

12.9

%

1 A non-GAAP measure, see reconciliations of non-GAAP measures later
in this release.

Net sales in the second quarter were $144 million, a decrease of 9
percent. In local currency sales decreased 8 percent primarily due to
capital project delays pending the outcome of presidential elections in
the United States and China and because of the economic slowdown in
Europe. Also, to a lesser extent, Hurricane Sandy caused a short-term
delay related to certain capital projects in the Northeast. Gross margin
on a non-GAAP basis in the second quarter increased 220 basis points
primarily as a result of improved profitability of new product
introductions. SG&A and Other expense on a non-GAAP basis in the second
quarter increased 330 basis points to 25.5 percent due to lower sales
volume.

Professional Division Highlights

The Professional Division continued its success in touring during the
second quarter with the global market embracing the award winning JBL
VTX Line Array powered by the Crown HD4 amplifier. HARMAN maintained
sector leadership with sound reinforcement for several high profile
events, including the 12-12-12 Sandy Relief benefit concert at Madison
Square Garden.

The Company’s focus on the transportation vertical market continues to
pay dividends, particularly in the emerging markets. HARMAN’s IDX
integrated audio and visual information delivery system will be going
into the Dandong airport in China and the Bangalore International
airport in India.

The Company’s success in the global markets continued during the
quarter, with new wins in Brazil for two additional FIFA World Cup
stadiums. Other installations in the quarter included the Clemson
Memorial Stadium in South Carolina, the Rose Bowl in California, and
Penn State University Stadium.

Other (Corporate)

FY 2013 Key Figures – Other

Three Months Ended December 31

Six Months Ended December 31

Increase (Decrease)

Increase (Decrease)

$ millions

3MFY13

3MFY12

IncludingCurrencyChanges

ExcludingCurrencyChanges1

6MFY13

6MFY12

IncludingCurrencyChanges

ExcludingCurrencyChanges1

SG&A & Other

32

26

20

%

20

%

55

45

22

%

22

%

Restructuring-related costs

0

0

0

0

Non-GAAP1

SG&A & Other

32

26

21

%

21

%

55

45

22

%

22

%

1,2 A non-GAAP measure, see reconciliations of non-GAAP measures
later in this release.

The Company accelerated its R&D investment and continued its global
marketing campaigns, driving a modest increase in SG&A expense. The
Company’s Corporate Technology Center (CTC) is driving and enabling
cutting-edge development in connectivity and networking, cloud
computing, wireless technologies, digital signal processing, and energy
efficient solutions.

HARMAN International Industries, IncorporatedConsolidated
Statement of IncomeReconciliation of GAAP to Non-GAAP
Results

(In thousands, except earnings per share data;unaudited)

Three Months EndedDecember 31, 2012

GAAP

Adjustments

Non-GAAP

Net sales

$

1,055,642

$

0

$

1,055,642

Cost of sales

783,849

(956)a

782,893

Gross profit

271,793

956

272,749

Selling, general and administrative expenses

203,411

12,643b

216,054

Sale of Intellectual Property

0

0

0

Operating income

68,382

(11,687

)

56,695

Other expenses:

Interest expense, net

3,687

(1,129

)

2,558

Foreign exchange losses, net

988

0

988

Miscellaneous, net

1,430

0

1,430

Income from operations before taxes

62,277

(10,558

)

51,719

Income tax expense

14,788

(4,127

)c

10,661

Net income

$

47,489

$

(6,431

)

$

41,058

Earnings per share:

Basic

$

0.69

$

0.09

$

0.59

Diluted

$

0.68

$

0.09

$

0.59

Weighted average shares outstanding:

Basic

69,009

69,009

Diluted

69,734

69,734

a)

Restructuring expense in Cost of Sales was $1.0 million due to
projects to increase efficiency in manufacturing.

b)

Non-recurring income in SG&A was $12.6 million primarily due to
reduction of a contingent consideration accrual relatedto
the acquisition of HARMAN Embedded Audio LLC, formerly known as
MWM Acoustics.

c)

The tax benefits are calculated by multiplying the actual
restructuring \ non-recurring charge in each individual country bythe
statutory tax rate within that specific country.

HARMAN International has provided a reconciliation of non-GAAP
measures in order to provide the users of these financial statements
with a better understanding of our non-recurring charges.These
non-GAAP measures are not measurements under accounting principles
generally accepted in the United States.These measurements
should be considered in addition to, but not as a substitute for, the
information contained in our consolidated financial statements prepared
in accordance with US GAAP.

HARMAN International Industries, IncorporatedConsolidated
Statement of IncomeReconciliation of GAAP to Non-GAAP
Results

(In thousands, except earnings per share data;unaudited)

Six Months EndedDecember 31, 2012

GAAP

Adjustments

Non-GAAP

Net sales

$ 2,053,835

$ 0

$ 2,053,835

Cost of sales

1,503,795

(996)a

1,502,799

Gross profit

550,040

996

551,036

Selling, general and administrative expenses

402,567

12,455b

415,022

Sale of Intellectual Property

0

0

0

Operating income

147,473

(11,459)

136,014

Other expenses:

Interest expense, net

9,682

(1,128)

8,554

Foreign exchange losses, net

1,139

0

1,139

Miscellaneous, net

2,609

(26)

2,583

Income from operations before taxes

134,043

(10,305)

123,738

Income tax expense

31,999

(4,064)c

27,935

Net income

$ 102,044

$ (6,241)

$ 95,803

Earnings per share:

Basic

$ 1.48

$ 0.09

$ 1.39

Diluted

$ 1.47

$ 0.09

$ 1.38

Weighted average shares outstanding:

Basic

68,846

68,846

Diluted

69,582

69,582

a)

Restructuring expense in Cost of Sales was $1.0 million due to
projects to increase efficiency in manufacturing.

b)

Non-recurring income in SG&A was $12.5 million primarily due to
reduction of a contingent consideration accrual related tothe
acquisition of HARMAN Embedded Audio LLC, formerly known as MWM
Acoustics

c)

The tax benefits are calculated by multiplying the actual
restructuring \ non-recurring charge in each individual country bythe
statutory tax rate within that specific country.

HARMAN International has provided a reconciliation of non-GAAP
measures in order to provide the users of these financial statements
with a better understanding of our non-recurring charges.These
non-GAAP measures are not measurements under accounting principles
generally accepted in the United States.These measurements
should be considered in addition to, but not as a substitute for, the
information contained in our consolidated financial statements prepared
in accordance with US GAAP.

HARMAN International Industries, IncorporatedConsolidated
Statement of IncomeReconciliation of GAAP to Non-GAAP
Results

(In thousands, except earnings per share data;unaudited)

Three Months EndedDecember 31, 2011

GAAP

Adjustments

Non-GAAP

Net sales

$

1,127,029

$

0

$

1,127,029

Cost of sales

821,490

(263)a

821,227

Gross profit

305,539

263

305,802

Selling, general and administrative expenses

210,174

(634)b

209,540

Sale of Intellectual Property

(13

)

0

(13

)

Operating income

95,378

897

96,275

Other expenses:

Interest expense, net

4,059

0

4,059

Foreign exchange losses, net

7,373

0

7,373

Miscellaneous, net

1,955

0

1,955

Income from operations before taxes

81,991

897

82,888

Income tax expense

22,736

338(c

)

23,074

Net income

$

59,255

$

559

$

59,814

Earnings per share:

Basic

$

0.83

$

0.01

$

0.84

Diluted

$

0.82

$

0.01

$

0.83

Weighted average shares outstanding:

Basic

71,463

71,463

Diluted

72,299

72,299

a)

Restructuring expense in Cost of Sales was $0.3 million due to
projects to increase efficiency in manufacturing.

b)

Restructuring expense in SG&A was $0.6 million due to projects to
increase efficiency in engineering and administrativefunctions.

c)

The tax benefits are calculated by multiplying the actual
restructuring charge in each individual country by the statutory
taxrate within that specific country.

HARMAN International has provided a reconciliation of non-GAAP
measures in order to provide the users of these financial statements
with a better understanding of our non-recurring charges.These
non-GAAP measures are not measurements under accounting principles
generally accepted in the United States.These measurements
should be considered in addition to, but not as a substitute for, the
information contained in our consolidated financial statements prepared
in accordance with US GAAP.

HARMAN International Industries, IncorporatedConsolidated
Statement of IncomeReconciliation of GAAP to Non-GAAP
Results

(In thousands, except earnings per share data;unaudited)

Six Months EndedDecember 31, 2011

GAAP

Adjustments

Non-GAAP

Net sales

$

2,177,632

$

0

$

2,177,632

Cost of sales

1,584,451

(1,965)a

1,582,486

Gross profit

593,181

1,965

595,146

Selling, general and administrative expenses

423,926

(947)b

422,979

Sale of Intellectual Property

(301

)

0

(301

)

Operating income

169,556

2,912

172,468

Other expenses:

Interest expense, net

9,335

0

9,335

Foreign exchange losses, net

11,597

0

11,597

Miscellaneous, net

3,399

0

3,399

Income from operations before taxes

145,225

2,912

148,137

Income tax expense

37,603

881(c

)

38,484

Net income

$

107,622

$

2,031

$

109,653

Earnings per share:

Basic

$

1.51

$

0.03

$

1.54

Diluted

$

1.49

$

0.03

$

1.52

Weighted average shares outstanding:

Basic

71,265

71,265

Diluted

72,085

72,085

a)

Restructuring expense in Cost of Sales was $2.0 million due to
projects to increase efficiency in manufacturing.

b)

Restructuring expense in SG&A was $0.9 million due to projects to
increase efficiency in engineering and administrativefunctions.

c)

The tax benefits are calculated by multiplying the actual
restructuring charge in each individual country by the statutory
taxrate within that specific country.

HARMAN International has provided a reconciliation of non-GAAP
measures in order to provide the users of these financial statements
with a better understanding of our non-recurring charges.These
non-GAAP measures are not measurements under accounting principles
generally accepted in the United States.These measurements
should be considered in addition to, but not as a substitute for, the
information contained in our consolidated financial statements prepared
in accordance with US GAAP.

(1) Impact of restating prior year results at current year foreign
exchange rates.

HARMAN International has provided a reconciliation of the non-GAAP
measures in the table above to provide the users of the financial
statements with a better understanding of the Company’s performance.Because
changes in currency exchange rates affect our reported financial
results, we show the rates of change both including and excluding the
effect of these changes in exchange rates.We encourage readers
of our financial statements to evaluate our financial performance
excluding the impact of foreign currency translation.These
non-GAAP measures are not measurements under accounting principles
generally accepted in the United States.This measurement should
be considered in addition to, but not as a substitute for, the
information contained in our consolidated financial statements prepared
in accordance with US GAAP.

(1) Impact of restating prior year results at current year foreign
exchange rates.

HARMAN International has provided a reconciliation of the non-GAAP
measures in the table above to provide the users of the consolidated
financial statements with a better understanding of the Company’s
performance.Because changes in currency exchange rates affect
our reported financial results, we show the rates of change both
including and excluding the effect of these changes in exchange rates.We encourage readers of our financial statements to evaluate our
financial performance excluding the impact of foreign currency
translation.These non-GAAP measures are not measurements under
accounting principles generally accepted in the United States.This
measurement should be considered in addition to, but not as a substitute
for, the information contained in our consolidated financial statements
prepared in accordance with US GAAP.

(1) Impact of restating prior year results at current year foreign
exchange rates.

HARMAN International has provided a reconciliation of the non-GAAP
measures in the table above to provide the users of the financial
statements with a better understanding of the Company’s performance.Because
changes in currency exchange rates affect our reported financial
results, we show the rates of change both including and excluding the
effect of these changes in exchange rates.We encourage readers
of our financial statements to evaluate our financial performance
excluding the impact of foreign currency translation.These
non-GAAP measures are not measurements under accounting principles
generally accepted in the United States.This measurement should
be considered in addition to, but not as a substitute for, the
information contained in our consolidated financial statements prepared
in accordance with US GAAP.

(1) Impact of restating prior year results at current year foreign
exchange rates.

HARMAN International has provided a reconciliation of the non-GAAP
measures in the table above to provide the users of the consolidated
financial statements with a better understanding of the Company’s
performance.Because changes in currency exchange rates affect
our reported financial results, we show the rates of change both
including and excluding the effect of these changes in exchange rates.We encourage readers of our financial statements to evaluate our
financial performance excluding the impact of foreign currency
translation.These non-GAAP measures are not measurements under
accounting principles generally accepted in the United States.This
measurement should be considered in addition to, but not as a substitute
for, the information contained in our consolidated financial statements
prepared in accordance with US GAAP.

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